Small Business Issues–How do you prepare employees to be owners?

The Fremont Group is engaged with a landscape contracting firm.  The owner of 20 years is approaching retirement.  He is a “type A” who has run the company without delegating any real authority to any of his employees.  He has 3 competent employees to whom he wants to sell the business but they are totally inexperienced.  One is his best field worker; the other two have worked the field and do most of the sales.  Of them one is more office orientated but has never had responsibility for the books and both have always relied upon the owner who would have final say regarding bidding.

Let us know what you think should be done to prepare these 3 for ownership.  (It is always permissible to assume some of your own facts in order to make your points!)

2 thoughts on “Small Business Issues–How do you prepare employees to be owners?

  1. The best way is to engage outside professionals. The roles that the owner and employees have played and group dynamics within the business, generally preclude change. Outside professionals can create change in attitude and the way each of them perceive their roles and responsibilities.

  2. More than anything, the former employees need to learn that they are now owners and not employees and have to learn to act differently than they did in the past.

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